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ITEM: |
ACTION
ITEM |
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10. |
RECEIVE FISCAL YEAR
2024-2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT |
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Meeting
Date: |
November
17, 2025
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Budgeted:
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N/A
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From: |
David J.
Stoldt, |
Program/ |
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General
Manager |
Line Item
No.: |
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Prepared
By: |
Nishil
Bali |
Cost Estimate: |
N/A |
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General Counsel Review:
N/A
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Committee Recommendation: The Finance and
Administration Committee reviewed this item on November 10, 2025.
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CEQA Compliance: This action
does not constitute a project as defined by the California Environmental
Quality Act Guidelines Section 15378. |
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SUMMARY: A draft copy of the District’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year (FY) 2024-2025 is provided for review. Draft copies of the Independent Auditors’ Report and Board Communication Letter (required communication letter from the Auditors to the Board) for the fiscal year ending June 30, 2025, have been received from the District’s auditors, The Pun Group LLP. The final audit will be posted on the District’s website after it has been accepted by the Board and submitted to the Government Finance Officers Association.
This is the eleventh year that the District has prepared an ACFR. An ACFR is a set of government financial statements comprising the financial report of a governmental agency that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). GASB provides standards for the content of an ACFR in its annually updated publication. The District’s ACFR is audited by an external certified accounting firm utilizing GASB requirements. An ACFR is composed of three sections:
Introductory section – Includes the transmittal letter.
Financial section – Includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.
Statistical section – Includes additional financial, economic, and demographic information.
The auditors have issued an “unmodified opinion” on the District’s ACFR for Fiscal Year 2024-2025. An unmodified opinion is the opinion where the auditor expresses that the financial statements are fairly presented, in all material respects, in accordance with the generally accepted accounting principles in the United States. The audit did not identify any deficiencies in the internal control that the auditors consider to be material weaknesses. Representatives from The Pun Group LLP will be available at the Board meeting to review the Board Disclosure Letter (AU-260 Communication at Conclusion).
A Management Letter may be issued in conjunction with the Report to offer suggestions for improvements on matters that came to the auditors’ attention in connection with the audit, however, such a letter was not deemed necessary by The Pun Group LLP, in connection with the audit for this fiscal year.
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its ACFR for the fiscal year ended June 30, 2024. This was the tenth year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the District had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we will be submitting it to the GFOA to determine its eligibility for another certificate.
RECOMMENDATION: The Finance and Administration Committee recommends that the Board receive the Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2025.
10-A Draft Annual Comprehensive Financial Report for FY 2024-2025
10-B Draft Board Disclosure Letter (AU-260 Communication at Conclusion)
U:\staff\Boardpacket\2025\111725\Action
Items\10\Item-10.docx